How employers can help workers claim EITC.
Many business executives want to keep their employees happy, but there are few ways to do it that doesn't does·n't
Contraction of does not. cost them money. Well, here's one: the Earned Income Tax Credit The United States federal Earned Income Tax Credit (EITC) is a refundable tax credit that reduces or eliminates the taxes that low-income married working people pay (such as payroll taxes) and also frequently operates as a wage subsidy for low-income workers. .
The Earned Income Tax Credit (EITC EITC Earned Income Tax Credit
EITC Eastern Idaho Technical College
EITC Emirates Integrated Telecommunication Company (UAE)
EITC Education and Information Transfer Core
EITC Electro/Information Technology Conference ) is the government's largest benefits program for working families. It was created in 1975 in part to offset the burden of Social Security taxes on low-wage employees and to provide an incentive to work.
Work is the key. People must have earned income Sources of money derived from the labor, professional service, or entrepreneurship of an individual taxpayer as opposed to funds generated by investments, dividends, and interest. in order to qualify. There also are income limits. For example, a couple must earn less than $39,783 if they have two or more children. The maximum credit ranges from $428 for a childless individual to $4,716 for families.
For low-wage workers, the tax refund--supplemented by EITC and other important tax breaks--often becomes the largest single check they will receive during the year.
But here's the issue: one in four eligible workers fails to claim the EITC.
There are many reasons. Some workers' income may be so low they have no tax filing requirement. They aren't aware that, if they did file, they might qualify for this and other tax credits. Childless workers also are eligible--just for a lesser amount than families.
Non-English speakers, nontraditional families, Native Americans, rural families, and the disabled are all people who could possibly benefit from EITC but who are difficult to reach with information about the credit.
This is where business can play a critical role in spreading the word about these important benefits. But many times business does not know where to start. To meet the growing business need, each year Corporate Voices for Working Families produces an employer guide that pro vides companies with information and tips on how to provide workers with information about important tax credits and other public benefits.
Companies can learn now to use the Internet Internet
Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the , internal corporate Web sites and educational seminars to disseminate dis·sem·i·nate
v. dis·sem·i·nat·ed, dis·sem·i·nat·ing, dis·sem·i·nates
1. To scatter widely, as in sowing seed.
2. this information and educate their employees about the benefits of EITC. In addition, the guide offers paycheck stuffers, fact sheets and break room posters that companies can brand with their own logo. (For more information or to access to the guide, you can visit cvworkingfamilies.org.)
Employers also should be aware of the professional and free help available to their workers. More than 70 percent of EITC claimants receive help preparing their tax returns, mostly by paid professionals. Low-income taxpayers who use paid preparers should seek out reputable rep·u·ta·ble
Having a good reputation; honorable.
repu·ta·bil professionals to ensure accurate returns.
Hundreds of organizations also partner with the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. to operate volunteer tax preparation sites nationwide. Volunteers offer free tax preparation services Tax preparation services
Firm that prepare tax returns for a fee. helping taxpayers claim the credits and deductions for which they are eligible. For taxpayers who want to prepare their own return, there is Free File, which is available at IRS.gov. Free File offers several free options to EITC-eligible taxpayers.
Finally, the U.S. Department of Labor estimates that by the year 2012, 7.5 million new jobs will be created in the American economy; 6 million of those jobs will be low-wage. To help increase opportunities for employees and assist companies, it will take a commitment by the public and private sector working together. Together we make a real difference in the lives of working families.
Donna Klein Klein , Melanie 1882-1960.
Austrian-born British psychoanalyst who first introduced play therapy and was the first to use psychoanalysis to treat young children. is president and founder of Corporate Voices for Working Families and Margaret A. Roark, president and owner of M&D Consulting Inc., is the 2008 chair of the Internal Revenue Service Advisory Council.